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CA State Employees Can Cash Out Unused Vacation Time Before Retirement

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Some state employees in California don't have to wait till retirement to cash out their unused vacation time.

The California Department of Human Resources released an updated policy earlier this week, reminding certain state workers they can get an annual cash payment for unused vacation time and paid leave through the Leave Buy-Back Program. In 2020, the HR department also removed limits on employees’ leave balance. The department authorized this program in the past for state employees, allowing most union and non-union members, such as managers and supervisors, to trade up to 80 hours of accrued leave for money. Including a cap helped state departments rein in payouts when workers retire, according to a Sacramento Bee report. However the program applies to only specific departments, and will depend on whether there are funds available for cashing out, via the HR manual.

Departments will inform employees if they have enough money to participate in the program either before or on May 1. Workers will be required to submit a request in May, called the Excluded Employee Leave Buy-Back Request, to cash out, and payments are expected in as early as May 2022 and as late as June 30, 2022.

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